Tourism Holdings has posted a $1.4 million interim profit after slumping to a loss last year but is still bracing itself for an reduction in international visitor demand over the next six months.The $1.4 million surplus for the six months ended December c
Tourism Holdings has posted a $1.4 million interim profit after slumping to a loss last year but is still bracing itself for an reduction in international visitor demand over the next six months.
The $1.4 million surplus for the six months ended December compares to a $4.8 million net operating loss for same period last year, although this was cut to a $300,000 loss after gains from asset sales.
The result is stronger than the company originally forecast, with a prediction in November that it may post a loss as high as $1 million.
It recorded a 15% rise in operating revenue to $92 million.
This included an $8 million rise in fleet sale revenue, with all business units seeing an increase in operating earnings
The company attributed the result turnaround to a continued focus on revenue growth, although it conceded that it had done so with a lower margin product mix due to the changing operating environment.
It also credited a turnaround in its manufacturing business, which is now expected to return to profitability in the next financial year.
Overall, Tourism Holdings’ ebit performance swung from a loss of $4.4 million to a profit of $3.1 million
But it also warned that the second half was unlikely to see the same ebit improvement with Australia and New Zealand national tourism forecasts predicting an ongoing reduction in international visitor demand.
Other issues facing the company include demand and cost pressures in New Zealand, fleet constraints in Australia and “less than optimal” demand in products from motorhome manufacturer Ci Munro.
It is looking to Australia for further growth to balance out these pressures, with further investment in its Australian businesses. By this time next year, its total fleet size across the Tasman is expected to be at the highest point since the Britz acquisition.
The company is now forecasting a net profit after tax for the full year of between $3 million and $4.5 million, including a full year tax investment allowance of $1.4m.
The company has declared a fully imputed dividend of 2cps, with a record date of March 19.
